Budget & Taxes (Income Tax)

in committee · Maryland · House of Delegates Feb 5, 2026

HB 902: Retire in Maryland Tax Relief Act

This bill creates a state income tax credit for Maryland residents aged 77 and older to help reduce their tax burden. Eligible taxpayers must have federal adjusted gross income below $175,000 for individuals or $250,000 for couples filing jointly. The credit amount increases with age, ranging from 25% of the state income tax for those turning 77 to a full 100% credit for those aged 80 and older. The bill applies to taxable years beginning after December 31, 2025, and prevents taxpayers from claiming both this credit and another existing senior tax credit in the same year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for elderly Maryland residents through income tax credits, reducing tax burden for seniors with moderate incomes.90% confidence

Sub-Topics Income Tax Tax Credits Tags Seniors

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in committee · Maryland · House of Delegates Feb 6, 2026

HB 905: Recipients of State and Local Government Funding - Reporting (Buy Maryland Reporting Requirements)

This bill requires recipients of Maryland state and local government funding to report annually to the Comptroller on how they use those funds, including details about any contractors or subcontractors they hire. Entities receiving payments for providing goods or services must also include this information on their income tax returns, such as the number of employees, work locations, and whether contractors are certified minority businesses. The Comptroller will then compile this data and submit a summary report to the General Assembly each year, showing the percentage of in-state versus out-of-state contractors, average employee counts, and the share of minority business enterprises. These reporting requirements apply to state, county, and municipal government units as well as individuals and corporations that receive public funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enhances government accountability by requiring detailed reporting on fund usage and contractor information, promoting fiscal transparency and responsible spending.75% confidence

Sub-Topics Audits & Accountability Income Tax Procurement

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in committee · Maryland · House of Delegates Feb 5, 2026

HB 903: Income Tax - Subtraction Modification - Donations to Food Banks and Other Charitable Entities

This Maryland bill allows taxpayers to subtract up to $1,000 from their state income tax when donating food or cash specifically designated for food purchases to qualified charitable organizations. The law defines eligible recipients as food banks, homeless shelters, domestic violence shelters, religious groups, and other registered charities that provide free food to people in need. To claim this benefit, taxpayers must list the recipient organization's name and provide proof of the donation's value on their income tax return. The Comptroller will create regulations to establish registration criteria for these organizations, and the bill includes a requirement for a report by January 1, 2029, on whether donations have increased since the law took effect. The provision applies to taxable years beginning after December 31, 2025, and automatically expires on June 30, 2029.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deductions for charitable food donations, offering tax relief to taxpayers while supporting essential community services.85% confidence

Sub-Topics Audits & Accountability Income Tax

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in committee · Maryland · Senate Feb 11, 2026

SB 935: Income Tax - Subtraction Modification - Donations to Food Banks and Other Charitable Entities

SB 935 creates a new $1,000 annual income tax deduction for Maryland taxpayers who donate food or cash specifically designated for food purchases to qualifying charitable entities. It directly affects Maryland residents who make such donations to defined organizations like food banks, homeless shelters, or religious groups providing free food to those in need. The bill requires taxpayers to submit proof of donations with their tax return and establishes criteria for entities to qualify as "qualified charitable entities" through Comptroller registration. The provision takes effect July 1, 2026, and expires June 30, 2029, unless renewed.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $1,000 tax deduction for food donation donors, providing direct tax relief to middle/lower income taxpayers who support charitable food services.95% confidence

Sub-Topics Audits & Accountability Income Tax

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in committee · Maryland · House of Delegates Feb 16, 2026

HB 1437: Income Tax - Credit for Long-Term Care Premiums

HB 1437 creates a Maryland income tax credit for long-term care insurance premiums paid by residents aged 45 or older. It allows taxpayers to claim a credit equal to 100% of eligible premiums (capped at $250 per year per insured person), covering the taxpayer, spouse, or certain family members. The credit is restricted to policies purchased after December 31, 2026, and cannot be claimed for individuals already covered before January 1, 2027, or for multiple taxpayers claiming the same person. The bill also requires annual reports to the legislature on credit usage and its impact on state medical assistance savings.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for long-term care premiums, reducing tax burden for eligible residents. Directly aligns with tax relief indicator for Budget & Taxes.95% confidence ✓ HealthcareSupports HealthcareProvides tax credit for long-term care insurance premiums, increasing affordability and access to coverage for seniors, directly supporting healthcare access.95% confidence

Sub-Topics Income Tax Tax Credits Long-Term Care

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in committee · Maryland · House of Delegates Feb 5, 2026

HB 880: Maryland Income Tax - Decoupling From Amendments to the Internal Revenue Code - Depreciation and Business Interest Expenses

HB 880 modifies Maryland's income tax code to decouple from recent federal changes affecting depreciation deductions and business interest expenses. It directly affects Maryland taxpayers (individuals and businesses) who claim these deductions by requiring them to use pre-2003 depreciation rules and pre-July 2025 interest deduction rules instead of current federal allowances. Key provisions include excluding certain federal adjustments to §179 depreciation limits, applying older rules to heavy-duty SUVs, and exempting manufacturing entities from these changes if property was placed in service after 2018. The bill takes effect for taxable years beginning after December 31, 2025, ensuring Maryland tax calculations differ from federal updates on these specific deductions.

Topics ✓ Budget & TaxesSupports Budget & TaxesDecouples from federal tax changes to maintain pre-2003 depreciation and pre-2025 interest rules, preserving state tax revenue and promoting fiscal responsibility.92% confidence

Sub-Topics Income Tax

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signed · Maryland · Senate Apr 28, 2026

SB 466: Income Tax - Credit for Physician Preceptors in Areas With Health Care Workforce Shortages - Alterations

SB 466 modifies Maryland's income tax credit for physicians mentoring medical students in underserved areas. It removes a requirement that students must be enrolled in Maryland medical schools and reduces the minimum hours per clinical rotation from 100 to 90. The bill directly affects licensed physicians serving as preceptors in areas designated as having health care workforce shortages by the state. This change aims to expand eligibility for the $1,000-per-student rotation tax credit (capped at $10,000 annually per physician), potentially increasing mentor availability in shortage regions. The credit remains limited to $100,000 total annually for all physicians.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility for physicians, providing tax relief (reducing state revenue) to address healthcare workforce shortages via fiscal policy.95% confidence ✓ HealthcareSupports HealthcareBill expands tax credit eligibility for physician preceptors in healthcare shortage areas by removing enrollment restrictions and lowering hour requirements, directly increasing provider access in underserved communities.95% confidence

Sub-Topics Income Tax Tax Credits

in committee · Maryland · House of Delegates Feb 16, 2026

HB 1521: Income Tax - Credit for Contributions, Volunteerism, and Employment Initiatives for At-Risk Youth

HB 1521 creates a Maryland state income tax credit for individuals and businesses that support at-risk youth through donations, volunteering, or hiring. It allows a 50% credit on contributions to certified organizations (max $5,000 for individuals, $100,000 for businesses), $25 per volunteer day at schools/recreation centers (max $500 annually), and $1,000 per hired at-risk youth (max $5,000 annually). The credit applies only to youth aged 12-25 facing challenges like homelessness, foster care aging out, or living in designated high-poverty areas. Taxpayers must apply for certification through the Department of Commerce, with a $10 million annual cap on total credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits reducing liability for supporting youth programs, aligning with tax relief and fiscal responsibility for community initiatives.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credits to incentivize hiring at-risk youth (12-25), directly advancing employment opportunities for vulnerable workers through business incentives.90% confidence

Sub-Topics Income Tax Tax Credits Professional Licensing

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in committee · Maryland · House of Delegates Feb 5, 2026

HB 926: Income Tax – Individual Itemized Deductions – Alterations

HB 926 modifies Maryland's income tax code to adjust how itemized deductions are calculated for certain taxpayers. It requires individuals who itemize deductions to further reduce their Maryland itemized deductions by either the amount of real property taxes paid (capped at $10,000) or $10,000, for tax years 2025 through 2029. This applies to Maryland taxpayers who claim federal itemized deductions, including homeowners who deduct property taxes. The bill also maintains a separate phase-out for high-income earners (exceeding $100,000 single/$200,000 married) where deductions are reduced by 7.5% of the excess AGI. The changes take effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesLimits property tax deductions to $10k cap, increasing state tax revenue by reducing available deductions for high-value homeowners.95% confidence

Sub-Topics Income Tax

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signed · Maryland · Senate May 26, 2026

SB 805: Income Tax - Student Loan Debt Relief Tax Credit - Alterations

SB 805 modifies Maryland's Student Loan Debt Relief Tax Credit program. It changes the recapture rule so individuals only repay the *unused portion* of the credit (not the full amount) if they don't use it for student loan payments within 3 years. The bill also authorizes the Maryland Higher Education Commission to extend the repayment deadline for eligible individuals facing specific delays, such as litigation over federal student loan plans or government processing issues. This directly affects Maryland residents who claimed the credit for undergraduate or graduate student loan debt and must now use it within a flexible timeframe. The bill does not alter credit limits ($9 million for 2025, $18 million annually after) or priority rules for state employees.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax credit recapture to reduce repayment burden, expanding access to student loan debt relief and strengthening tax relief for eligible residents.90% confidence ✓ EducationSupports EducationModifies tax credit to reduce repayment burden for student loan relief, enhancing higher education access and affordability for eligible individuals.92% confidence

Sub-Topics Income Tax Tax Credits Higher Education Student Financial Aid